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Dec 31, 2024
TFI Q4 2023 Earnings Report
TFI International Announces 2023 Fourth Quarter and Full-Year Results
Key Takeaways
TFI International reported a slight increase in total revenue for Q4 2023, reaching $1.97 billion, up from $1.96 billion in the prior year period. Despite a decrease in operating income and net income compared to Q4 2022, the company demonstrated strong cash flow from operations and increased its quarterly dividend by 14%.
Fourth quarter total revenue increased to $1.97 billion, primarily due to business acquisitions, despite weaker end market demand.
Operating income decreased to $198.3 million, impacted by lower revenues and reduced gains from asset sales.
Net cash from operating activities significantly grew by 22% to $302.6 million, and free cash flow increased by 29% to $243.8 million.
The Board of Directors approved a 14% increase in the quarterly dividend to $0.40 per share, reflecting confidence in future performance.
TFI
TFI
TFI Revenue by Segment
Revenue by Segment
Less-Than-Truckload Revenue
CapyFin.comTruckload Revenue
CapyFin.comLogistics Revenue
CapyFin.comEliminations Revenue
CapyFin.com Forward Guidance
TFI International is strategically positioned for 2024, with strong performance in Logistics and anticipated benefits from acquisitions in Truckload, alongside a focus on LTL growth and efficiency.
Positive Outlook
- Logistics segment outperforming the market, boosted by the JHT acquisition.
- Truckload segment expected to benefit significantly from the Daseke acquisition, anticipated to close in Q2 2024.
- Renewed focus on LTL growth and quality of revenue through improved service, evidenced by reduced cargo claims ratios.
- Continued sharp focus on day-to-day operations to drive efficiencies.
- Seeking highly strategic investment opportunities while returning excess cash to shareholders, supported by a 14% dividend increase.
Challenges Ahead
- Ongoing turnaround at LTL remains a top priority, indicating areas needing improvement.
- Market conditions are still a factor, despite the company's ability to grow revenue.
- The Daseke acquisition is not yet closed and is anticipated for Q2 2024, meaning its benefits are not immediate.
- The company's ability to recruit, train and retain qualified drivers is a competitive factor.
- Fuel price variations and the company's ability to recover these costs from customers remain potential challenges.
Revenue & Expenses
Visualization of income flow from segment revenue to net income